WHEREAS,
the National Development Company, a major corporate vehicle of the
National Government, was created to pursue commercial, industrial,
agricultural and mining ventures necessary to give impetus to national
economic development;chanroblesvirtualawlibrary
WHEREAS, the National Development Company is authorized by its Revised
Charter to contract loans and other obligations and guarantee domestic
and foreign loans and other indebtedness; chanroblesvirtualawlibrary
WHEREAS, there is an immediate and compelling need to extend the
guarantee of the National Government to secure obligations incurred by
the National Development Company in pursuit of its objectives.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the power vested in me by the Constitution, do hereby
order and decree as part of the law of the land, the following:cralaw:red
Section 1. Section 12 of Presidential Decree No.
1648, as amended by Presidential Decree No. 1787, is hereby amended to
read as follows:cralaw:red
"Sec. 12. Foreign Loans; Republic Guarantee. —chanroblesvirtualawlibrary
(a) The Company is hereby authorized to contract
loans; credits, and other indebtedness from time to time, in any
convertible foreign currency or capital goods, from foreign
governments, or any international financial institutions or fund
sources or any other entities, on such terms and conditions it shall
deem appropriate for the accomplishment of its purposes and to enter
into and execute agreements and other documents specifying such terms
and conditions. The loans, credits and indebtedness contracted by the
Company under this paragraph (a) and all payments, whether of
principal, interest, other charges or otherwise, due in connection
therewith, shall be exempt from all direct and indirect taxes,
including withholding taxes on payments of interest, and from all fees,
imposts, other charges and restrictions presently imposed or to be
imposed by the Republic of the Philippines or of its agencies and
political subdivisions.
(b) The payment of all loans, credits and other
indebtedness contracted by the Company pursuant to the preceding
paragraph (a) shall be and are hereby fully and unconditionally
guaranteed by the Republic of the Philippines. The obligations of the
Republic of the Philippines as guarantor hereunder shall be absolute
and unconditional, and shall not be contingent or conditioned upon the
pursuit of any right or remedy against the Company or its assets or
against any other person or against any collateral security for or
other guarantee of the obligations of the Company. With respect to such
obligations, the Republic of the Philippines hereby waives for itself
and its property immunity from suit, jurisdiction of any court, legal
proceedings, attachment prior to judgment, attachment ind of execution,
other attachment and execution of judgment, on the ground of
sovereignty. The Minister of Finance is hereby directed and authorized
to pay all such loans, credits and other indebtedness, including
interest accrued thereon and all amounts payable in connection
therewith in case the Company fails to do so, and there are hereby
appropriated, out of the general funds in the National Treasury, the
sums necessary to make the payments guaranteed by this Decree. chanroblesvirtualawlibrary
(c) The President of the Philippines, or his duly
authorized representative, is authorized to issue guarantees on behalf
of the Republic of the Philippines to secure, absolutely and
unconditionally, the performance of guarantee obligations undertaken by
the Company pursuant to Section 4, paragraph (11) hereof. Such
guarantees shall contain such terms and conditions as the President of
the Philippines or his duly authorized representative may deem
appropriate, including without limitation the terms and conditions set
forth in the preceding paragraph (b), and shall not be subject, as to
the amount thereof, to the limitations prescribed under Republic Act
No. 6142, as amended."
* Section 3. All laws, decrees, rules and orders
inconsistent with the provisions of this Decree are hereby, repealed,
amended or modified accordingly.
Section 4. This Decree shall take effect immediately.
Done in the City of Manila,
26th day of June in the year of Our Lord, Nineteen Hundred and
Eighty-Two.
* Copied verbatim from documents obtained directly
from Malacañang Records (missing Section 2).
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